1. Chapter 22: The Great Depression and the New Deal in Georgia STUDY PRESENTATION © 2010 Clairmont Press

2. Section 1: Response to the Great Depression Response to the Great DepressionResponse to the Great Depression Section 2: The First New Deal The First New DealThe First New Deal Section 3: The New Deal: 1935 and Beyond The New Deal: 1935 and BeyondThe New Deal: 1935 and Beyond 2

3. Section 1: Response to the Great Depression  Essential Question What were effects of the Great Depression on Georgians? 3

4. Section 1: Response to the Great Depression  What terms do I need to know? barter 4

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6. Response to the Great Depression  After the 1929 stock market crash, America experienced a growing unemployment rate and many bank and business failures. Many citizens lost their homes and farms.  President Franklin Roosevelt’s election in 1932 marked the beginning of changes in the relationship between the American economy and its government. Roosevelt termed his programs of change the New Deal.  Georgians hoped the changes would improve their lives. 6

7. Life in Depression Georgia  Some Georgia companies profited in the 1930s, including Coca-Cola and Stuckey’s, which sold pecan candies.  Many factory workers became unemployed and homeless as were many farmers who lost their homes and farms.  Atlanta became home for many escaping from the countryside, leading to more overcrowding in the poor areas.  Soup kitchens, the Salvation Army, and churches tried to feed the hungry. Community Chest organizations raised funds, which were quickly used up.  In Atlanta, a program was set up to put people to work for goods or food instead of money.  The unemployment rate was twice as high for blacks as for whites.  Many families had so little cash that they bartered goods rather than using cash. 7

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9. The Election of 1932  Democrat Franklin Delano Roosevelt (FDR) campaigned on the promise of the “New Deal.”  FDR had visited Warm Springs for several years for treatment of polio. He considered himself an “adopted Georgian.”Warm Springs  Roosevelt said in a speech in Atlanta that the country needed “bold, persistent experimentation.”  Roosevelt defeated incumbent President Herbert Hoover, and won all of the southern states in the 1932 election. 9 Link: Little White HouseLittle White House

10. A Bank Holiday and Banking Reform  Many banks in Georgia and across the country had closed. Congress passed a bank bill to help bankers reopen their banks.  The Federal Deposit Insurance Corporation (FDIC) was established to insure that depositors would not lose their money if a bank closed.  Commercial banks, which perform services for businesses, were separated from investment banks, which raised funds for the growing companies and the government. 10

11. Eugene Talmadge 1933  One of the most famous politicians in Georgia.  His good looks and support for the farmer made him popular to many Georgians.  Elected as Governor 4 terms.  Talmadge hleped GA:  -reduced property tax  -built highways  -helped unemployed

12. Talmadge Against FDR’s New Deal He did not like big government having programs that controlled people’s lives. He especially disliked relief efforts, public welfare, and federal assistance programs. He opposed minimum wage requirements. When the General Assembly passed laws to enable Georgia to participate in other New Deal programs, the governor vetoed them. When Talmadge refused to follow federal New Deal regulations, the federal government took over New Deal programs in Georgia. After two consecutive terms, Talmadge ran for US Senate against Richard Russell and was defeated.

13. Talmadge Re-Elected Softened his anti-Roosevelt stand Modified version of New Deal State’s economy grew Talk of Integration at University of Georgia & Georgia Southern University Talmadge had them fired Offended the Southern Association of Colleges and Schools and they voted to take away the accreditation of white Georgia colleges.

14. Recovery Programs (Farmers and Manufacturers) Agricultural Adjustment Administration (AAA) Farm Security Administration (FSA) National Recovery Administration (NRA) --Pay farmers to produce less cotton, corn, wheat, rice, and milk and to raise fewer hogs. --Bought products from the farmers and gave them to the poor. -tried to increase demand and therefore raise prices --Provided loans to more than a million sharecroppers to buy land, tools, and animals. --Encouraged farmers to try new crops, taught them how to conserve their soil, and gave them training on how to better manage their farms. --Made businesses abide by strict codes of conduct. --Outlawed false advertising and made companies charge the same prices for a product to everyone. --Set minimum wage laws --Set maximum working hours for each employee --Child labor no longer permitted.

15. Relief Programs (Unemployed) Civilian Conservation Corps (CCC) Public Works Administration (PWA) Works Progress Administration (WPA) --Put young men to work in rural and forest areas, planting trees and terracing fields to prevent soil erosion. --Also worked on dams, roads, and forest fire prevention and mosquito control projects. -Roosevelt State Park (Pine Mountain); Tybee island sea wall; Macon’s airport, Savannah River levee system --Put about half-million men to work on public construction projects (school buildings, community auditoriums, hospitals, dams, roads and bridges, airports for the military, and ships for the navy). --biggest and most controversial work relief program. --cleared slums --built power plants --provided free plays and concerts

16. Reform Programs Security & Exchange Commission (SEC) National Labor Relations Board (NLRB) Rural Electrification Administration (REA) Tennessee Valley Authority (TVA) Social Security Act --Oversee the buying and selling of stocks --protect investors and corporations --set rules against the wild speculation and shady dealings that had led to the 1929 crash --Protected workers who wanted to organize unions. --Employees guaranteed the right to choose representatives to bargain collectively with employers over wages and working conditions. --Provided electrical power to rural areas. --Built dams and operated power plants to provide low-cost electricity to people in seven states. --bought power to millions of farm families through cooperatives. -We now have Blue Ridge Lake, Lake Chatuge, and Lake Nottely --Provided government pensions (retirement pay) to older citizens. --Provided federal money to state governments for helping people who were unemployed.

17. Federal & State Government Help  President Herbert Hoover was the first president to use the power of the federal government to help the economy recover. Farmers -subsidies: government grant money to help farmers Government bought large amounts of cotton, wheat, and other commodities (crops). Businesses -collective bargaining: discussion b/w unions and employers to discuss working conditions, wages, hours, benefits Government supported public works projects like post offices, parks, courthouses, and roads. Helped many unemployed men get back to work.

18. The Effects of the New Deal  The New Deal resulted in many improvements in Georgia, including flood control levees, paved roads, schools, murals and theatrical productions, and development of historic sites.  The national government enacted programs that directly benefited its citizens instead of leaving that up to state or local governments.  Georgia leaders supported New Deal programs that helped farmers. Leaders were skeptical of programs that regulated industries and targeted factory workers.  The New Deal helped modernize Georgia. Transportation improved and agriculture changed permanently with better equipment and new varieties of crops.  The economy improved, but did not recover until the United States entered World War II in the 1940s. 18

19. Section 2: The First New Deal  Essential Question What were the major programs of the first New Deal? 19

20. Section 2: The First New Deal  What terms do I need to know? subsidy labor union relief strike 20

21. Agricultural Adjustment Administration  The AAA act specified how much a farmer could grow of a specific crop. The farmer then received a subsidy for amounts not grown.  Companies that processed the crops paid a tax, which funded the subsidies.  The subsidies kept farmers from overproducing, which increased farm prices.  Large landowners benefitted the most. Some bought tractors with the subsidies. Sharecroppers were often out of work.  After the AAA was discontinued in 1936, a new act paid farmers to stop planting crops that harmed the soil (including cotton and tobacco) and paid bonuses for farmers to plant new crops, such as soybeans. 21

22. The Civilian Conservation Corps  Funding of the Civilian Conservation Corps (CCC) employed men between 18-25 years old to work on projects to help America’s environment.  Georgia benefitted from many CCC camps in the state where the workers were trained, fed, and housed. The camps were segregated.  Projects included planting trees, draining swampy land, and building parks.  In Georgia, young men built state parks and national parks, and worked on dams to stop erosion.  The popular CCC program lasted until 1942, when the American military became the major employer for most young men. 22 Link: Civilian Conservation CorpsCivilian Conservation Corps

23. Other Early Programs  The National Industrial Recovery Act (NIRA) tried to regulate industry’s production. It allowed workers to form labor unions, organized workers’ groups to negotiate better wages, benefits, and working conditions.  The Public Works Administration (PWA) funded building projects, creating thousands of jobs. The government hoped the workers would stimulate the economy by buying goods.  PWA projects included dams, airports, schools, and hospitals. Atlanta received some new housing projects for poorer citizens. 23

24. New Deal Programs and Legislation 24

25. Opposition to the New Deal  Some Americans felt the New Deal cost too much. Others felt the many programs would make people too dependent on the government.  Georgia Governor Eugene Talmadge felt that relief (money, goods, loans and jobs) should only come from private agencies. He did not recognize workers’ right to bargain.  In September 1934, thousands of Georgia textile workers walked off their jobs on strike.  Talmadge imprisoned striking workers at Fort McPherson. 25

26. Section 3: The New Deal: 1935 and Beyond  Essential Question How did Georgia’s economy begin to rebound with more New Deal programs after 1936? 26

27. Section 3: The New Deal: 1935 and Beyond  What terms do I need to know? cooperative recession minimum wage 27

28. The New Deal: 1935 and Beyond  In spite of New Deal programs enacted during Roosevelt’s first administration, millions of Americans remained out of work.  The election of 1936 brought new groups of voters into the Democratic Party.  The election of Governor Ed Rivers meant that Georgia could now participate in New Deal programs that former Governor Eugene Talmadge had blocked.  Georgia’s economy began to emerge from long years of depression. 28

29.  The Rural Electrification Act (REA) provided government loans to groups of farmers in a rural area.  The farmers could form an electrical cooperative, a company owned and operated for the benefit of those using its services.  REA allowed Georgia’s rural farms to receive electricity. This allowed them to use the same labor-saving devices that city dwellers enjoyed. 29 Rural Electrification As a result of the REA, this woman was able to have an electric stove. Such a device was much safer and easier to use than a wood or coal- burning stove. Image: U.S. Government

30. Social Security  Americans would receive a retirement pension based on money they paid into Social Security while working. Employers matched the amount of money the employees paid.  The act provided that federal money would go to the states to provide aid for dependent children and their mothers.  Unemployment insurance, paid for by state and federal governments, was also provided.  Many Georgians were not covered by Social Security since farm laborers and domestic workers were not covered.  Georgia’s workers were not eligible until Talmadge left the governor’s office in 1936, because he refused to set up state agencies to administer the program. 30

31. The Election of 1936  President Roosevelt easily won reelection, including winning the votes of African Americans in the north, who had voting rights.  In Georgia, Richard Russell defeated Eugene Talmadge for the U.S. Senate seat. Russell supported Roosevelt and his New Deal policies.  Senator Walter F. George of Georgia was reelected.  Ed Rivers, a New Deal supporter, won the governorship, and thousands of Georgians benefitted from participating in the programs.  Governor Rivers also passed education reform, including a longer school year. The state paid for textbooks for schoolchildren. 31 Link: Richard B. RussellRichard B. Russell

32. The Election of 1936 32

33. The New Deal’s Final Years  In 1938, the country went into a recession, or economic slowdown.  Many Southerners opposed the Fair Labor Standards Act, which established a minimum wage and 40-hour work week. They believed that business would have to reduce the number of workers in order to pay the minimum wage.  The minimum wage was the least an employee could pay an employee per hour.  Not all of Roosevelt’s New Deal reforms were approved by Congress. 33

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